Like the economy, local real estate sales were up again in July 2019 as the Charlotte area’s hot real estate market showed little sign of cooling off.
Fueled by low unemployment and comparably low interest rates, buyers continue to outnumber the supply of available homes. It will be interesting to see how events unfold if there are changes in the general economy anytime soon.
According to the Charlotte Regional Realtor Association’s most recent data on Waxhaw real estate comparing statistics from July 2018 and July 2019, new listings were down 7.3% from 137 to 127, pending sales were up 5% from 119 to 126, and closed sales were up 4.5% from 134 to 140.
The median sales price in July increased from $410,000 to $435,000, and the average home sales price went up from $476,500 to $491,091.
Additionally, the number of months’ supply of inventory was down from 3.9 months to 2.5 months, meaning if no additional inventory was added, the available home market would be depleted nearly 1 1/2 months faster than it would have been a year ago.
What Does This Mean For Home Buyers and Sellers?
As I wrote in July, housing demand in Waxhaw continues to outpace housing supply. However, in July, the median and average home prices increased year over year after decreasing in June.
This is not as telling of a statistic when looking at the entire 28173 zip code as it would be if you looked at specific subdivisions year over year, where you’ll see the majority have continued to appreciate in value.
Our market’s biggest challenge remains low available resale inventory versus demand. Homes in good condition and priced at market value continue to sell quickly, whereas those that need some work and others priced even slightly over market value tend to linger.
With pending sales up in June, I correctly predicted that closings would be up year over year in July, and they were. I expect to see the same trend when the August numbers come out next month.
Typically the end of summer is when the real estate market cools a bit with families taking vacations and many of the buyers changing school districts have already selected their homes. However, once school is back in session, I see the market warming up and remaining steady through the months of September and October.
The colder holiday months of November and December are when activity typically slows with fewer, but often more motivated, home buyers and sellers in the market.
According to Bankrate.com (August 28, 2019), the benchmark thirty-year fixed-rate mortgage sat at 3.71%, down from 3.93% when I last shared a market update a month ago.
While the market thawed a bit in mid-to-late 2018 due to a September rate hike and threats of additional rate hikes by the Fed in early 2019, those rate increases didn’t materialize, and, in fact, mortgage rates are now at their lowest point since 2016.
Combined with low unemployment, this is good news for home buyers and sellers. However, it’s also good news for current homeowners looking to refinance their existing mortgage to a lower rate, which will contribute to continued low inventory.
At the end of the day, life events continue to happen, and they are the most reliable drivers of decisions to buy and sell real estate.
If you are thinking about making a move, or if you just have questions about the current real estate market, reach out to me and I’d love to connect.